Abstract

That capitalism is a superior economic system because it elicits productive effort from individuals by utilizing the desire for material improvement, is a contention that can be defended if it could be established that this desire is a universal human motive and is to be found in non-capitalist as well as capitalist societies. In addition, it can be argued that within a market economy, if men pursue what is in their own interest, their actions are likely to have the unintended consequence that, many others benefit; for under capitalism, one man's gain is not necessarily another's loss. Both these points are raised in reply to Richard Schmitt's alleged refutation of 'the psychological defence of capitalism” Inquiry, Vol. 16 [1973], No. 2).